The questions are indicated on the picture

5. In 20x3, Ball Labs incurred the following costs: . Direct costs of doing contract research and development work for the government to be reimbursed by governmental unit 400,000 Research and development costs not included above were: Depreciation 300,000 Salaries 700,000 . Indirect costs appropriately allocated 200,000 Materials 180,000 What was Ball's total research and development expense in 20x3? a. 1,080,000 b. 1,380,000 c. 1,580,090 d. 1,780,000 (AICPA) 6. West, Inc. made the following expenditures relating to Product Y: Legal costs to file a patent on Product Y - P10,000. Production of the finished product would not have been undertaken without the patent. Special equipment to be used solely for development of Product Y - the P60,000. The equipment has no other use and has an estimated useful life of four years. Labor and material costs incurred in producing a prototype model - P200,000. . Cost of testing the prototype - P80,000. What is the total amount of costs that will be expensed when incurred? a. 280,000 b. 295,000 c. 340,000 d. 350,000 (AICPA)